POWER: Mid-Day Power Summary: CWE Rebounds With Gas

CWE front-month power futures are trading higher today as European gas markets extended gains throughout the morning. German spot power fell sharply on the day amid forecasts for significantly higher wind output. 

• France Base Power OCT 24 up 0.5% at 67.92 EUR/MWh
• Germany Base Power OCT 24 up 1% at 83.7 EUR/MWh
• EUA DEC 24 up 0.3% at 66.7 EUR/MT
• TTF Gas OCT 24 up 1.8% at 37.12 EUR/MWh
• Rotterdam Coal OCT 24 down 0.6% at 114.25 USD/MT
• Front month TTF has extended gains throughout the morning supported by forecasts for colder weather and ongoing supply risks.
• EU ETS Dec24 has recouped earlier losses following the auction results to trade higher on the day. Upside is limited as forecasts in NW Europe suggested higher renewables output, while natural gas prices are edging higher today. The latest EU ETS CAP3 EU auction cleared lower at €65.75/ton CO2e, down from €65.99/ton CO2e in the previous auction and the lowest since 23 July.
• The EU’s Competitiveness Report recommended the bloc to decouple the remuneration of renewable and nuclear energy from fossil-fuel generation by building on the tools such as PPAs and two-way CfDs.
• Italy is looking to create a new company to build SMRs, while officials are in preliminary with several companies to develop the plan, sources told Bloomberg.
• Spain’s average yearly investment in its distribution network is expected to drop by around 15% over 2024-26 compared to 2021-23, with the decrease likely to raise the risks for renewables.
• Finland’s 890MW OL2 nuclear reactor had an unplanned generator failure on 9 Sept at around 06:30 CET, with the unit disconnected until 29 Sept.
• All six reactors at the Zaporizhzhia nuclear plant will remain in a state of cold shutdown for the duration of the war, the IAEA said.